Engro Foods Limited (EFOODS): First powder product does not change our case – By IMS Research
<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">EFOODS has entered the powder market, albeit through a
trading business for now. Its launch of a full-cream-milk powder (FCMP) is
under the flagship Olpers brand. This is acting as a trigger for the stock and
indicates confidence that legacy offerings have stabilized enough for EFOODS to
bring new products to market. That said, we retain our Sell rating, where
profit build-up will take time in our view.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">FCMP is a niche market, similar to growing-up-milk powder
(GUMP). Nestle’s Nido Fortified is the leader in FCMP with 80% market share. We
think EFOODS is trying to replicate its success against Nestle’s MilkPak in the
UHT segment by now taking on Nido. W...
